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Travel constraints affect tourism

9 November 2009

The flight schedules and network strategies Druk Air, the only national airline, follows are affecting the tourism in the country, according to tour operators. Accessibility is one of the main constraints affecting the growth and expansion of tourism. According to Association of Bhutanese Tour Operators (Abto), about 82 percent of dollar-paying tourists use Druk Air.
Tour operators last August raised concerns regarding the flight schedules and network strategies to the cabinet ministers. The government then said it would get back to Bhutan Chamber of Commerce and Industry (BCCI) on the issue by the second half of September.
The general secretary of Abto, Sonam Dorji, earlier said that, although peak season and festival dates are already defined and announced two years in advance, last minute announcement of schedules and insertion of additional flights have been deterrent to promotion and planning. Continuous change of reservation system is affecting working environment of tour operators and their dealings with foreign agents.
He submitted to the government whether the planning of schedules and routes could take tourism into consideration. The government, in a letter to BCCI, said Druk Air is well aware of the consequences of any changes in its schedule necessitated by commercial or operational circumstances. It has always endeavoured to minimise disruptions and any unavoidable changes have always been made in consultation with Abto.
According to the 10th plan document, international tourism travel to Bhutan is almost entirely dependent on air travel. The limited air transport option and adverse weather conditions severely affect tourism.
The document said the deficiencies in the reservation system were on account of having selected a low-cost internet reservation and the low reliability of the local internet providers. A new reservation system, Sita Horizon, has now been installed with its full integration in September. It is expected to provide 99 percent reliability.
Regarding the Druk Air network, tour operators submitted to the government to optimise the load factor within the existing network rather than expanding to new networks, which would disrupt existing load capacity and affect the schedules.
Sonam Dorji said with only two aircraft, expanding the existing network will have an effect on the frequency thereby affecting the arrivals into the country. He suggested that it would be more appropriate to maximise frequency in the shorter sectors to bring in more people.
He said a tour operator has to constantly update Druk Air on the status of the waitlist and request for additional flights every season. “We would like to submit that although profit-making is one of the objectives of Druk Air, being under DHI and being the only carrier into Bhutan, deciding not to operate flights that are not commercially viable has a larger adverse impact on the other stakeholders and the economy.”
Even if the existing two aircraft of Druk Air operate in full capacity for 365 days, the carrying capacity is only 83,000 passengers, which would include non-tourist passengers. This indicates that until Druk Air expands its capacity and maximises its frequency in the shorter sectors or any other airlines are invited to operate, the prospect of increasing arrivals is limited.
The average cabin factor last year and this year has been about 56 percent. When the demand is more during Paro and Thimphu tshechu, Druk Air operates additional flights. For safety reasons, no flights are operated after mid-day during spring seasons. In order to enhance capacity without having to increase frequency, the government is pursuing a strategy of strengthening third and fourth freedom routes.
This is expected to increase capacity between Paro and Kathmandu by 90 percent, Paro and Kolkata by 150 percent and Paro and Delhi by 24 percent. The government is also studying possible expansion of services to either Singapore or Hongkong. Adding Guwahati as an additional point in 2010 to serve as an additional gateway for tourism in eastern Bhutan is being considered.
Tourism industry in Bhutan has become a major service industry that provides employment to over 7,000 people and generates valuable foreign exchange. It is one of the largest generators of exchangeable currency and is among the top three revenue generators in the country.
In 2008, total tourist arrivals touched 27,636 and earned USD 38.8 million, which is an average growth of 36.5 percent on direct revenue, reaching record arrival and revenue generation figures.
Tourism industry has also contributed immensely to strengthening Bhutan’s image and identity around the world and brought greater recognition for the country’s special efforts in conserving the environment and preserving its rich cultural heritage.
According to 10th plan document, the smooth operation of tourism activities has also been hindered by the lack of effective coordination among government agencies. Therefore, there is a need for improved inter- and intra-ministerial harmonisation.
The indicative total capital outlay for the tourism sector for the 10th plan is Nu 572.706 million.

The flight schedules and network strategies Druk Air, the only national airline, follows are affecting the tourism in the country, according to tour operators. Accessibility is one of the main constraints affecting the growth and expansion of tourism. According to Association of Bhutanese Tour Operators (Abto), about 82 percent of dollar-paying tourists use Druk Air.

Tour operators last August raised concerns regarding the flight schedules and network strategies to the cabinet ministers. The government then said it would get back to Bhutan Chamber of Commerce and Industry (BCCI) on the issue by the second half of September.

The general secretary of Abto, Sonam Dorji, earlier said that, although peak season and festival dates are already defined and announced two years in advance, last minute announcement of schedules and insertion of additional flights have been deterrent to promotion and planning. Continuous change of reservation system is affecting working environment of tour operators and their dealings with foreign agents.

He submitted to the government whether the planning of schedules and routes could take tourism into consideration. The government, in a letter to BCCI, said Druk Air is well aware of the consequences of any changes in its schedule necessitated by commercial or operational circumstances. It has always endeavoured to minimise disruptions and any unavoidable changes have always been made in consultation with Abto.

According to the 10th plan document, international tourism travel to Bhutan is almost entirely dependent on air travel. The limited air transport option and adverse weather conditions severely affect tourism.

The document said the deficiencies in the reservation system were on account of having selected a low-cost internet reservation and the low reliability of the local internet providers. A new reservation system, Sita Horizon, has now been installed with its full integration in September. It is expected to provide 99 percent reliability.

Regarding the Druk Air network, tour operators submitted to the government to optimise the load factor within the existing network rather than expanding to new networks, which would disrupt existing load capacity and affect the schedules.

Sonam Dorji said with only two aircraft, expanding the existing network will have an effect on the frequency thereby affecting the arrivals into the country. He suggested that it would be more appropriate to maximise frequency in the shorter sectors to bring in more people.

He said a tour operator has to constantly update Druk Air on the status of the waitlist and request for additional flights every season. “We would like to submit that although profit-making is one of the objectives of Druk Air, being under DHI and being the only carrier into Bhutan, deciding not to operate flights that are not commercially viable has a larger adverse impact on the other stakeholders and the economy.”

Even if the existing two aircraft of Druk Air operate in full capacity for 365 days, the carrying capacity is only 83,000 passengers, which would include non-tourist passengers. This indicates that until Druk Air expands its capacity and maximises its frequency in the shorter sectors or any other airlines are invited to operate, the prospect of increasing arrivals is limited.

The average cabin factor last year and this year has been about 56 percent. When the demand is more during Paro and Thimphu tshechu, Druk Air operates additional flights. For safety reasons, no flights are operated after mid-day during spring seasons. In order to enhance capacity without having to increase frequency, the government is pursuing a strategy of strengthening third and fourth freedom routes.

This is expected to increase capacity between Paro and Kathmandu by 90 percent, Paro and Kolkata by 150 percent and Paro and Delhi by 24 percent. The government is also studying possible expansion of services to either Singapore or Hongkong. Adding Guwahati as an additional point in 2010 to serve as an additional gateway for tourism in eastern Bhutan is being considered.

Tourism industry in Bhutan has become a major service industry that provides employment to over 7,000 people and generates valuable foreign exchange. It is one of the largest generators of exchangeable currency and is among the top three revenue generators in the country.

In 2008, total tourist arrivals touched 27,636 and earned USD 38.8 million, which is an average growth of 36.5 percent on direct revenue, reaching record arrival and revenue generation figures.

Tourism industry has also contributed immensely to strengthening Bhutan’s image and identity around the world and brought greater recognition for the country’s special efforts in conserving the environment and preserving its rich cultural heritage.

According to 10th plan document, the smooth operation of tourism activities has also been hindered by the lack of effective coordination among government agencies. Therefore, there is a need for improved inter- and intra-ministerial harmonisation.

The indicative total capital outlay for the tourism sector for the 10th plan is Nu 572.706 million.

By Rabi C Dahal

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Posted by Bhutan Observer · Filed Under Economy, News 

Comments

2 Responses to “Travel constraints affect tourism”

  1. Kota on November 10th, 2009 10:10 am

    It is high time we rethink of the monopoly established by Druk Air. Entire tourism industry has to bow before the Druk Air.

  2. lopez on November 17th, 2009 12:58 pm

    wow………….my god

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